File photo: IC

China on Friday refuted rumors that it had halted cross-border listings between the Shanghai and London stock exchanges due to the alleged political tensions with Britain.

Chang Depeng, a spokesperson for the China Securities Regulatory Commission, said that the Shanghai-London Stock Connect is operating as normal and recent media reports about the so-called suspension are contrary to the facts.

"The mechanism serves as an important measure for the opening up of China's capital market and is instrumental in broadening the two-way investment and financing channels," Chang added.

The flagship scheme for cross-border listings between the Shanghai and London stock exchanges, better known as the London-Shanghai Stock Connect, was first announced in 2015 and put into operation last year, under which companies listed on one exchange are permitted to apply to sell shares on the other. It was regarded as one of the major steps taken by China to further open up its capital market and beef up economic and financial ties with the UK.

Shanghai-listed brokerage Huatai Securities was the first Chinese company to list in London as part of a link between the two financial centers in June when it raised a total of 1.54 billion U.S. dollars via selling depository receipts on the London Stock Exchange.

China's Ministry of Foreign Affairs said on Thursday that it is not aware of the specifics, but added that it "hopes the British side will provide a fair, just, open and non-discriminatory business environment for Chinese companies to invest in the UK, and create suitable conditions for the smooth development of practical cooperation in various fields between China and Britain."